Oil service companies report drop in exploration activity in North America. It started last year and continues now. The reason? Oil integrated companies, don’t confuse with “oil service”, are concentrated on development and production. They are already full of resources. They are not looking for more. They want to produce oil and gas, as much as possible and make bucks now. Oil service firms have to re-position their strategies increasing operating fleet in U.S. and moving exploration equipment everywhere.
All increase in world oil production happens here in U.S. This bias to production is in place in North America only. Other places are still in “peak oil” mode, trying to use old technologies to find new traditional resources. The longer U.S. leads in new oil and gas technologies the cheaper energy supplied to U.S. based businesses. It means stronger U.S. economy and stronger dollar. It starts with energy and goes everywhere. New technologies, boyz. That’s the way to grow and the way to invest.
This picture was anticipated for few years already and now it comes to rule. Do you still think that gold dropped because of conspiracies on Comex and other places? It means that you live in a cave. Gold dropped because U.S. economy improved making dollar stronger. Fracking technology that made U.S. domestic energy abundant was the main reason behind it.
How could this board resident-troll, with claims of “40 years of oil experience”, miss U.S. oil industry transformation and continue bumbling for many years about Comex default? Was it actually experience in snake oil, not in real oil? Continue dreaming about Russia dropping petrodollars. Good luck with it. Wasn’t the same dream applied to Iranian mullahs few years ago? ROFL
Gold fell when real estate stabilized and Americans became more convinced that the economy was stabilizing...People are beginning to feel insecure about any economic recovery or growth in the economy again...